All Forum Posts by: Mike Johns

I have done 2 loan assumptions myself and it can be hard getting help because it’s not a very common thing. Maybe if you post your questions on here the bigger pockets community could help! 

Hello Kate, 

   So I have recently  done a loan assumption myself and found it difficult to find resources. So I thought I’d try and help you but I’m no expert. 

   Everything will be done by whoever your friend has a mortgage through. So first thing you need is to contact them about doing a loan assumption and they should get in contact with you about all the paperwork you have to fill out. In a nutshell that’s it. I know it’s vague and I’m not a really good writer. Here are some things to consider though.

1. Are you going to live in the property? If you are it’s no big deal but if you plan on using it as an investment property be sure the mortgage company will allow it. For example Pennymac wouldn’t let me do a loan assumption unless it was going to be my primary residence, but US bank would. 

2. Are you going to use your VA entitlement or keep the entitlement in your friends name? When I did mine I couldn't use my VA entitlement because I had already used it. So I had to keep the other persons entitlement.

   I hope this helps at least a little and I wish you good luck. 

Just curious about what everyone's opinion is about refinancing a va loan to a traditional loan for the purpose of using the va loan on another property and living there, kind of similar to the idea of house hacking with a fha loan but only with a va loan?

Also I had a couple of questions about refinancing a loan from va to conventional

Do you need a down payment?

How long before you can typically refinance?

I'm unsure if it's even possible and would love anyone's input and feedback. Thank you